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Geography Human > GS&GG Bk5 - International Trade and Access to Markets > Flashcards

GS&GG Bk5 - International Trade and Access to Markets Flashcards

(38 cards)

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1
Q

What is comparative advantage?

A

Theory that countries should specialise in providing goods and services that they excel in
- otherwise trade goods + services

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2
Q

What is economic Rationale of Trade?

A

Potential economic benefits of international and inter-regional trade

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3
Q

What are the 7 barriers to trade?

A
  1. Tariffs
  2. Import licence
  3. Import quotas
  4. Subsidies
  5. Voluntary export restrains
  6. Embargoes
  7. Trade restrictions
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4
Q

What are tariffs?

A

A tax on imports

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5
Q

What is an import licence?

A

A licence issued by a national government authorising the importation of goods from a specific source

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6
Q

What is an import quota?

A

The physical limit on the quantity of goods that can be imported into a country

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7
Q

What are subsidies?

A

Grants / allowances usually awarded to domestic producers to reduce their costs and make them more competitive against imported goods

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8
Q

What are voluntary export restrains?

A

is a diplomatic strategy offered by the exporting country to appease the importing country and deter it from imposing trade barriers

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9
Q

What are embargoes?

A

Partial or complete prohibition of commerce and trade with a particular country
> particular reasons

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10
Q

What are trade restrictions?

A

Import restrictions based on quality of standard or how a product is produced > child labour

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11
Q

What are the trends in the volume and patterns of international trade?

A
  • incr mobility
  • incr capital
  • RTA’s (regional trade agreements)
  • WTO > free trade aim
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12
Q

Since what year has their been difficulty reaching trade agreements and why?

A

2008
- global financial crisis

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13
Q

What % of world trade do…
1. US, Japan and Germany account for?
2. + UK, Canada, Italy, France

A
  1. 25%
  2. 50%
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14
Q

What is investment? And what is it attracted by?

A

Money spent on another country to generate a profit

ATTRACTED BY:
- lower min wages > specialisation
- closer to consumer markets + natural resources
- reduced laws + legislation = gov policy
- actively encouraged by the domestic policy to move
- market size

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15
Q

What is glocalisation?

A

The adaptation of a global product for a local market place. The world comes from an amalgamation of the world globalisation and localisation

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16
Q

What is globalisation?

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A

The spread of economic, cultural and social ideas across the world

17
Q

What is free trade?

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A

2mn farmers > 68 countries > 1900 producer organisations

18
Q

FREETRADE

  1. Main goal
  2. Focuses on
  3. Primarily benefits
  4. Critics say
  5. Major actions
  6. Producers compensation determined by
  7. Supply chain
  8. Key advocate organisation
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A
  1. Incr nations economic growth
  2. Trade policies between countries
  3. Multinational corporations, powerful business interests
  4. Punishing to marginalised people + environment, long term sacrifices
  5. Countries lower tariffs, quotas, labour and environmental standards
  6. Market + government policies
  7. Many parties between producer and consumer
  8. WTO, World Bank, IMF
19
Q

FAIR TRADE

  1. Main goal
  2. Focuses on
  3. Primarily benefits
  4. Critics say
  5. Major actions
  6. Producers compensation determined by
  7. Supply chain
  8. Key advocate organisation
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A
  1. Empower marginalised people and improve quality of life
  2. Commerce among individuals and businesses
  3. Vulnerable farmers, artisans and workers in LICs
  4. Interferes with the free market, too small scale to impacts, inefficiencies
  5. Businesses offer producers favourable financing, long-term relationships, min prices + high labour and environmental standards
  6. Living wage and community improvements
  7. Include fewer parties, more direct trade
  8. Fair trade Labelling Organisations International, World Fair Trade Organisations
20
Q

What are the two factors of ethical trading?

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A
  1. Employment status (fair trade working conditions, fair trade, no child labour)
  2. Environmental focus
21
Q

TRANS-PACIFIC PARTNERSHIP (TTP)
1. Number of countries
2. Examples of countries
3. Criticism?
4. What topics are included that are extended beyond trade?

Study These Flashcards
A
  1. 12
  2. USA, Brunei, Canada, Chile, Japan etc
  3. Lack of transparency
  4. Copyright
22
Q

TRANSATLANTIC TRADE AND INVESTMENT PARTNERSHIP (TTIP)
1. What is it
2. Whose it between
3. What type of agreements are they
4. What rules do they include

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A
  1. Free trade agreement
  2. EU and USA
  3. Bilateral trade agreements
  4. Food safety laws, banking regulations
23
Q

What has China been doing recently?

Study These Flashcards
A
  • member of the G20 group
  • TNCs investing in African countries
  • gave a voice to member developing countries
24
Q

What are the aims of China? (3)

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A
  1. Represent the interests of the worlds poorest countries
  2. Help development in these countries
  3. Reduce poverty + disease + improve human rights
25
What is the importance of the role of China? (3)
1. Common interest with the poorest 77 in reducing poverty 2. Increased influence of world affairs 3. Group needs a powerful ally
26
What are the positives (5) and negatives (4) to the host country of investment e.g. from China?
POSITIVES 1. Access to more resources 2. Regulations + laws 3. Lower costs of production 4. Positive reputation 5. Ease of trade (trading blocs) NEGATIVES 1. Employment (direct + indirect) 2. Investment into infrastructure 3. Multiplier effect 4. Improved infrastructure can be used by all sectors
27
What are the positives (3) and negatives (4) to the country doing the investment e.g. China?
POSITIVES 1. Loss of finances from central economy 2. Less control e.g. other governments 3. Loss of jobs > industrialisation NEGATIVES 1. Loss of natural resources 2. Too much power of TNCs e.g. corruption 3. Leakage of the profits 4. Exploitation
28
3 key things that the Provision of Special and Differential Treatment (SDT) Agreements enable the poorest countries to do?
1. Tackle structural handicaps - lower levels of income > employment types - mainly exporting primary goods 2. Engage in world trade on a more advantageous level by: - providing incentives for export diversification - allowing more stable export revenues 3. Promoting faster income growth and development
29
Vulnerable or Prosperity and Creative consequences of differential access to markets?
VULNERABILITY 1. Covid 2. Environmental considerations 3. Conflicts > Russia/Ukraine, Gaza/Israel PROSPERITY AND CREATIVE 1. Global sporting events > Olympics 2. WFH > surrounding businesses fail 3. Space stations 4. Global commons > Antarctica
30
Why do TNCs operate in more than one market? (6)
1. Incr market share 2. Larger labour workforce > skilled 3. Less stringent H+S / weaker environmental laws 4. Resources 5. Trade deals 6. 24/7 operations (time zones)
31
3 key characteristics of TNCs?
1. HQ in HICs 2. Manufacturing > NEEs 3. Logo and slogan
32
Examples of two key TNCs and their worth?
Apple - $3.5tr Microsoft - $3.2tr
33
What are primary resources?
- location is where the resources are still exploited - finite resources - new demands e.g. lithium and EVs
34
What is secondary sector production?
- low labour costs - investment in education - work ethic - government incentives
35
What are the two types of integration?
1. Vertical 2. Horizontal
36
What is vertical integration? + example
Supply chain of a company is owed entirely by that company from raw materials to finished product - control over supplies and stocks - reduces the cost BP own the oil reserves + pipes
37
What is horizontal integration? + example
A strategy where a company diversifies its operations by expansion, merger or takeover to give broader capability at the same stage of production - complementary or competitive Kraft foods took over Cadburys
38
Who are the beneficiaries of the process of globalisation? (4)
1. NEEs 2. TNCs 3. International organisations > WTO, IMF, The World Bank 4. Regional Trading Blocs

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